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This content was originally presented at the 2026 Farmer2Farmer conference in Omaha, Nebraska, by Jackson Takach, Chief Economist and Head of Strategy at Farmer Mac.
Key Takeaways
Farmland values have remained resilient in 2026 despite high interest rates and declining net farm income, driven by tight supply of high-quality tillable acres.
Buyers are becoming more selective, shifting demand toward Grade A farmland with a proven yield history.
Farmland continues to serve as a reliable hedge against inflation, outperforming many other asset classes in volatility.
New revenue streams — including solar leases, wind energy, and carbon programs — are adding non-crop value to agricultural land.
Land value trends vary significantly by region; the Midwest remains the most competitive, while the Pacific Southwest is highly dependent on water rights.
The agricultural landscape is at a critical crossroads. As we move through 2026, the tension between persistent economic pressures and the historical resilience of farmland is front and center.
This report breaks down the key drivers, regional shifts, and the strategies that matter most to the success of your farm.
Despite the talk of a market correction due to high interest rates, farmland values have shown incredible staying power. For farmers looking to expand their footprint or protect their legacy, here is why the market remains so competitive:
The Fight for High-Quality Ground: The supply of high-quality, tillable land is still incredibly tight. When a premium tract adjacent to your current property hits the market, competition remains fierce because the availability of top-tier farmland is limited.
A Shield Against Inflation: While input costs fluctuate, farmland remains a reliable hedge against inflation. It is a stable asset that holds its value even when other sectors of the economy are volatile.
New Revenue Streams for the Farm: Beyond traditional crops, solar leases, wind energy, and carbon programs are creating new layers of value, giving farmers more ways to diversify your ag operation's income.
Interest rates remain the biggest hurdle in the current ag economy. With rates staying elevated longer than many expected, there are two main areas where this impacts your farm business:
Higher debt-servicing costs are eating into margins. We are seeing a shift where farmers are negotiating more firmly on cash rents, looking for terms that reflect the reality of lower net farm income projections for 2026.
With higher returns available in low-risk bonds, buyers are becoming much more selective. The focus has shifted heavily toward Grade A farmland with a proven yield history. For those looking to acquire new property, the goal is finding land that remains profitable even with narrower margins between returns and interest costs.
Land value trends are not uniform across the country. Depending on your primary crops and location, the market looks a little different:
Region | Trend | Primary Drivers |
Midwest (I-States) | Stable / Slight Up | Fierce demand for corn and soybean ground; farmers with strong equity are still the primary buyers. |
Delta Region | Moderate Growth | Shifting toward specialty crops and seeing strong growth in poultry-integrated farmland. |
Pacific Southwest | Volatile | Water rights are the primary determinant of value. If the property has secured water, it holds its value. |
Southeast | Growth | Development pressure is pushing land prices up as urban growth moves closer to existing farms. |
As we look toward the 2027 season, the focus is on operational efficiency and protecting asset quality. In this environment, improving the productivity of current acres is often more strategic than simply getting bigger. Farmers who maintain healthy debt-to-equity ratios and use precision data to manage the farm will be the best positioned to capitalize on opportunities when high-value property becomes available.
The 2026 ag economy is testing the resilience of every farm, but the foundation—the land—remains strong. Whether you are planning a transition to the next generation or strategically growing your farm, success depends on having the right financial partner in your corner.
FBN Finance offers tailored farmland financing solutions designed by people who understand the unique cycles of agriculture. With great rates and a streamlined application process, FBN Finance helps you move quickly when the right property becomes available, ensuring you have the capital needed to secure your farm's future.
Learn more about farmland loans from FBN Finance here.
Click here to start your land loan application.
Is farmland a good investment in 2026? Yes. Despite elevated interest rates and lower net farm income projections, farmland has maintained strong values due to tight supply of high-quality tillable acres, its historical role as an inflation hedge, and growing demand from alternative revenue streams like solar and carbon programs.
Are farmland values dropping in 2026? Not broadly. While some softening has occurred in lower-quality land, Grade A farmland with a proven yield history remains competitive. The market has shifted toward quality rather than volume.
How do interest rates affect farmland prices? Higher rates increase debt-servicing costs and compress margins, making buyers more selective. However, because farmland supply remains tight and the asset class is seen as stable, values have not declined sharply even as rates stay elevated.
Which regions have the highest farmland values in 2026? The Midwest I-States remain the most competitive for corn and soybean ground. The Southeast is seeing growth driven by development pressure, while the Pacific Southwest is highly variable depending on water rights.
What is driving farmland values in 2026? Three primary factors: limited supply of tillable acreage, farmland's role as an inflation hedge, and new income streams including solar leases, wind energy, and carbon programs that add non-crop value to agricultural land.
Interest Rates 101: Everything Farmers Need to Know About Interest Rates
Should Your Land Purchase Be Set Up in an LLC or Corporation?
What Are the Average Upfront and Closing Costs for a Land Loan?
When to Turn a Farmland Rental Agreement into a Farmland Purchase
Deciding to Rent vs. Buy Farmland: How to Calculate Your Cash Rent Equivalent (CRE)
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